Multi Space “Smart” Meters: ROI

Evaluation Evaluation

By: Paul F. Roberts

Provisos

• Only looking at question of ROI for multi-space “smart” meters

• No serious evaluation or “bake off” of competing vendors/platforms

• No input from Traffic Advisory Committee or • No input from Traffic Advisory Committee or consideration of effects on parking– Spill over to neighboring streets

– Changes to enforcement

• Tried to find most recent and reliable data– Some data is old

– Calculations mostly “back of the envelope”

Parking is a Resource

Expanded Parking Metering

• Objectives:

– Raise per space revenue!

– Provide convenience to shoppers, commuters

and residentsand residents

– Monetize unmetered spaces around commuter

and high traffic locations

– Provide better intelligence to town around

parking use/patterns

Who I talked to:

• Jeff Conti –Belmont

• Floyd Carman - Belmont

• Sgt. Kevin Shea - Belmont

• Brad Gerratt – City of Cambridge• Brad Gerratt – City of Cambridge

• Todd Kirrane – City of Brookline

• Steve Grassfield – City of Austin, TX

• Dan Kupferman – Parkeon Systems

• Dave Delaney - MacKay Meter Systems

Main Players

Multi Space Meters: Advantages

• User Friendly

• Take Credit, Coin and Cash (optional)– Credit option enables higher rates

• Attractive visually– One to many ratio for meters/spaces– One to many ratio for meters/spaces

• Easy to administer– Text, e-mail based notification when servicing needed

or problems encountered

• Higher per space revenue – No spill over

Multi Space Meters: Features(*)

• Coin, Credit, Cash & Smart Card

• Sleek design, small footprint, improves streetscape

• High-security cash protection & self-locking coin box

• Lighted, easy to use LED or LCD displays

• Wireless (WiFi or 3G) communications, real time credit • Wireless (WiFi or 3G) communications, real time credit card authorization– PCI and ADA compliant

• Remote wireless download of rates and messages

• Web based management (hosted by vendor or on premises)

• Power supply from battery, municipal or solar

(*)varies by vendor

Multi Space Meters

• Average 7-10 Spaces per meter

– Higher ratio for in-lot deployment

– Brookline: 850 single space meters replaced with 90 multi space meters

– Convenience (distance walked to meter) is the limiting factor

• Alternative single head meter with credit card

– MacKay and IBS Systems Offer

Multi Space Meters

• Higher up front cost than single space meters

– $7,000 to $9,000/unit

• Important to note ongoing fees per meter:

– Management and maintenance– Management and maintenance

• $50-$75/meter/month

• Warranty $250 to $1,200/meter/year (optional)

– Carrier fees for 3G access

• $30 to $50/machine/month to Verizon, T-mobile, AT&T, etc.

• Avoidable if unit supports WiFi access with municipal WiFi

(Brookline)

Multi Space Meters

• Vendor transaction processing fees

– Varies from vendor to vendor. Important to ask about

• Credit Card Processing Fees per transaction

– Can exceed cost of transaction for small time – Can exceed cost of transaction for small time

purchases

• Regulatory compliance (PCI DSS)

– Less exposure when vendor handles CC processing

• Lifespan

– 10-12 years

Multispace Meters

• Feedback: Todd Kirrane, Asst. Transp. Sec. City of Brookline – RFP with Parkeon, Digital, Cale, Duncan, MacKay

– Pilot deployment of four machines in two lots• 120 spaces total

– Removing 850 single space meters, replace with 90 multi space metersmeters

– Existing parking debit card system needed integration

– Muni WiFi integration

– Revenue up and maintenance costs down from pre-meter

– 2 FTE civilians cover 2,700 meters town wide and work as crossing guards

– Moving from $.75/hour to $1.00/hour rate.

Multi Space Meters

• Feedback: Steve Grassfield, Transp. Mgr, Austin, Texas– Parkeon Meters

– $7,400/meter + $250 warranty/year

– 700 units cover 5,000 spaces, replace 3,800 Duncan single head meters (plus expansion spaces)

– 64% of transactions credit card based– 64% of transactions credit card based

– 2.5m transactions in 2009 – increase of 29% y/y• Citations declined from 115,000 to 90,000 (ease of payment)

– No change in enforcement requirements

– Revenue: $4m a year up from $2.9m with single head meters• More spaces

– Suggest revenue or general obligation bond for meters?

Smart Meters: Right for Belmont?

Recent History

• 2002 Belmont Center Parking Study

Committee (BSC Group)

– Originally commissioned to assess impact of fire

station construction/locationstation construction/location

– Great and fairly recent data on parking

use/patterns

– Available online: http://bit.ly/d2HUnu

Parking by the numbers

• Main parking areas: Off Street:

– Claflin St. Lot - ~140 spaces

– Macy’s Lot - ~62 spaces

– Town Hall Lot: ~39 spaces– Town Hall Lot: ~39 spaces

– Cushing Square Lot: 54 spaces

– Waverly Square Lot: 38 spaces

Total: 333 spaces

Parking by the Numbers

Parking by the Numbers

• Most used spaces: Off Street– Claflin Street and Macy’s Lots (~140 and ~62 spaces):

• 76% and 73% utilization daily

• 193 and 105 vehicles parked/day (11 hours)

• 63% of Claflin St. Lot vehicles parked more than 4 hours

Cushing Square Lot (54 spaces):– Cushing Square Lot (54 spaces):• 75% utilized daily

• 36% parked more than 4 hours

– Town Hall Lot (39 spaces): • 78% utilized daily

• 58% of vehicles parked more than 4 hours

– Meters in use already

Multi Space Meters: Current

Parking by the numbers

• Main parking areas: On Street

– Concord Ave: 113 Spaces

– Waverly Square: 106 spaces

– Common St. N & S of Trapelo: 72 spaces– Common St. N & S of Trapelo: 72 spaces

– Leonard Street/Alexander Ave: 64 spaces

– Trapelo Road: 52 spaces

– Cushing Ave. 31 spaces

– Royal Road: 17 spaces

Total: ~512 spaces

Parking by the Numbers

• Most Used Spaces: On Street

– Leonard Street/Alexander Ave (64 spaces):

• 77% daily utilization

• 1.7 vehicles/space/hour• 1.7 vehicles/space/hour

• 5% parked more than 4 hours

– Trapelo Road (52 spaces):

• 64% daily utilization

• 1.5 vehicles/space/hour

• 6% parked more than 4 hours

Main Parking Areas: Leonard Street and Alexander

Main Parking Areas: Trapelo Road & Waverly Square

Main Parking Areas: Concord Ave. and Royal Road Area

Parking by the Numbers

• All day parkers On- and Off Street– Royal Road: avg. of 7.8 hours

– Claflin Street Lot: avg. of 5.9 hours

– Town Hall Lot: avg. of 5.6 hours

– Waverly and Cushing Square Lots: 4.0 hours– Waverly and Cushing Square Lots: 4.0 hours

– Trapelo road: avg. of 4.0 hours

• Lots already have meters

• On Street offer chance for additional revenue

• Availability of free, on street parking depresses use of metered parking

By the Numbers: Meter Revenue

By the Numbers: Parking Passes

• Average Monthly Parking Permits (@$60/m)

– ~$100,000/year

• Belmont Ctr/Claflin St. Lot : 63 ($3,780/mo or

$45,360/yr)$45,360/yr)

• Cushing Square Lot: 40 ($2,400/mo or $28,800)

• Waverly Square Lot: 38 ($2,280/mo or $27,360)

By the Numbers: Non-Meter Revenue

• Time-limited parking

– Belmont Center, Cushing, Waverly, Trapelo Road

and Belmont Streets, etc.

– Three .25 parking enforcement officers– Three .25 parking enforcement officers

– Manual tracking and paper tickets

By the Numbers: Non-Meter Revenue

By the Numbers: Meter & Pass

Revenue

• Claflin Street Lot: – 140 spaces x 309 park-able days*

= $2.44/space/day (2010 meter+ pass rev of $105.723)

• Cushing Square Lot: • Cushing Square Lot: – 52 spaces x 309 park-able days

=$2.21/space/day (2010 meter + pass rev of $35,529)

• Waverly Square Lot: – 40 spaces x 309 park-able days

= $2.69/space/day (2010 meter + pass rev of $33,352)(*) non-Sunday, non-holiday

By the Numbers: Non Meter Revenue

• Average Revenue: FY 2007-2010: $167,000– 512 spaces x 309 park-able days = ~$1.06/space/day

• Fluctuations due to staffing issues– Health issues reduce enforcement and ticketing

• Spotty enforcement• Spotty enforcement– Enforcement focused on Belmont Center, Cushing and

Waverly

– Trapelo Rd. between Waverly and Cushing is “sometimes”

– Belmont St. from Cushing Square to Cambridge line sporadic to no enforcement

Other Costs

• Processing Fees: Fy 2007- 2010 Avg. $18k

• Enforcement Officers: $60,613– Three, part time parking enforcement officers

• Salary, benefits, uniforms

• Total: 70 hours/week• Total: 70 hours/week

• 1 officer @ 4x5, 2 officers at 5x5

• Materials:– Paper Tickets: $2,300

• Maintenance: – Town does not track – sporadic costs for

parts/maintenance

Test Case: Royal Rd. Commuter Station

Test Case: Royal Rd. Commuter Station

ROI: Royal Rd. Commuter Station

• Costs:

2 Meters @ $8,500 = $17,000(*) $960 (yearly management, comms)

• Revenue: • Revenue:

17 Spaces @ $0.75/hour

Avg. Stay: 7.8 hours @ 100% utilization

Revenue: $5.85 x 309 x 17 = $30,730/year

• ROI: ~7 months

• Net to Belmont of ~ $297,000 over life of meters

(*) One meter may be an option

ROI: Leonard St. Shopping District

• Costs:

8 Meters @ $8,500 = $68,000$4,800 (yearly management, comms)

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$72,800 in first year, ~4,800 - $6,000/year after

• Revenue: • Revenue:

64 spaces @ $0.75/hour

10 hours/day (8:00am to 6:00pm) x 309 days

77% utilization

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$114.206.00

• ROI: ~7.5 months

• Net to Belmont of ~$1,094,000 over life of the meters

Other Considerations

• ROI estimates don’t consider:

– Conservative on number of meters required

– Overlap (double metering) raises revenue

• No physical meter – parked car takes “slip” with it, new car purchases new slipcar purchases new slip

– Enhanced ticketing enforcement

• Easier, faster, more efficient to check for slips than to do visual monitoring for time violations

– Eight year old numbers on parking/utilization

– Increase in rates increases revenue, speeds ROI

Other Considerations

• Street signage

• Staff Training

• Spill Over and enforcement on side streets

• Compliance!• Compliance!

• Collection

• Community push back (esp. merchants,

neighbors)

Recommendations

• Belmont make a goal of raising per-space revenue across town– Meter enforcement of on-street parking using multi

space meters in choice locations

– Review of enforcement and meter rates esp. for commuters

– Review of enforcement and meter rates esp. for commuters

• Proper RFP to leading vendors– Input from Traffic Advisory Committee, merchants

• Trial 1 year deployment at Royal Road Commuter Rail Location to test ROI– 1x or 2x meters

Thank You!

Questions?Questions?